A/HRC/37/39
territories occupied since 1967. With regard to the role of home States, the fact-finding
mission called upon all Member States to take appropriate measures to ensure that business
enterprises domiciled in their territory and/or under their jurisdiction, including those
owned or controlled by them, that conduct activities in or related to the settlements respect
human rights throughout their operations (A/HRC/22/63, para. 117).
33.
Some States have taken steps towards fulfilling their obligations towards businesses
operating in settlements. In November 2015, the European Union issued guidelines on the
labelling of products made in Israeli settlements. 18 As at December 2017, 18 States
members of the European Union had issued advisories warning businesses of the financial,
legal and reputational risks incurred by becoming involved in settlement activities. 19
34.
Some States have argued that they do not have an obligation to regulate
extraterritorial activities of businesses domiciled in their territory and/or jurisdiction. While
States are not generally required under international human rights law to do so, according to
the Guiding Principles on Business and Human Rights, there are “strong policy reasons” for
homes States to clearly set out expectations that businesses respect human rights abroad.
States also have additional obligations as economic actors in their own right when it comes
to State-owned enterprises. In its report submitted to the Council at its thirty-second
session, the Working Group on the issue of human rights and transnational corporations and
other business enterprises stated that there were compelling reasons for “greater action on
the part of States with regard to State-owned enterprises” so that they lead by example
(A/HRC/32/45).
C.
Responsibilities of businesses
35.
While States remain the primary duty bearers for the protection and promotion of
human rights, international law has increasingly evolved to recognize that non-State actors
– including business enterprises – also have responsibilities. The Guiding Principles on
Business and Human Rights set out a ���protect, respect and remedy” framework for business
and human rights, which recognizes that while States have a duty to protect the rights of all
against violations by third parties, there is an independent and complementary corporate
responsibility to respect all internationally recognized human rights standards. In addition
to human rights, humanitarian law standards also apply to business enterprises in situations
of armed conflict.20
36.
Under the Guiding Principles, all companies, regardless of size, industry, location,
ownership or legal structure, have a responsibility to conduct due diligence to identify,
prevent, mitigate and account for how they address their adverse human rights impacts
(principle 14). In its statement on the implications of the Guiding Principles in the context
of Israeli settlements in the Occupied Palestinian Territory of 6 June 2014, the Working
Group declared that businesses have a responsibility:
(a)
To avoid causing or contributing to adverse human rights impacts through
their own activities, and address such impacts when they occur;
(b)
To seek to prevent or mitigate adverse human rights impacts that are directly
linked to their operations, products or services by their business relationships, even if they
have not contributed to those impacts.
37.
The Guiding Principles recognize that businesses operating in conflict-affected areas
– which include areas under occupation – face heightened risks of involvement in human
rights abuses, including gross human rights abuses committed by other actors (Principle 7).
18
19
20
10
European Commission, Interpretative Notice on indication of origin of goods from the territories
occupied by Israel since June 1967 (11 November 2015).
For excerpts of each State’s advisory, see
www.ecfr.eu/article/eu_member_state_business_advisories_on_israel_settlements.
International Committee of the Red Cross, Business and International Humanitarian Law: an
Introduction to the Rights and Obligations of Business Enterprises under International Humanitarian
Law, ICRC, Geneva, 2006).
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